The following three accounts appear in the general ledger of Herrick Corp. during 2020. Equipment Date...
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The following three accounts appear in the general ledger of Herrick Corp. during 2020. Equipment Date Debit Credit Balance Jan. 1 Balance 158,400 July 31 Purchase of equipment 71,600 230,000 Sept. 2 Cost of equipment constructed 52,800 282,800 Nov. 10 Cost of equipment sold 48,400 234,400 Accumulated Depreciation-Equipment Date Debit Credit Balance Jan. 1 Balance 70,900 Nov. 10 41,600 Accumulated depreciation on equipment sold 29,300 Depreciation for year Dec. 31 23,600 65,200 Retained Earnings Date Debit Credit Balance Jan. 1 Balance 105,100 Aug. 23 Dividends (cash) 15,800 89,300 Dec. 31 Net income 67,700 157,000 From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on disposal of plant assets was $5,900. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $52,800.) (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) Adjustments to reconcile net income to > $ $ The following three accounts appear in the general ledger of Herrick Corp. during 2020. Equipment Date Debit Credit Balance Jan. 1 Balance 158,400 July 31 Purchase of equipment 71,600 230,000 Sept. 2 Cost of equipment constructed 52,800 282,800 Nov. 10 Cost of equipment sold 48,400 234,400 Accumulated Depreciation-Equipment Date Debit Credit Balance Jan. 1 Balance 70,900 Nov. 10 41,600 Accumulated depreciation on equipment sold 29,300 Depreciation for year Dec. 31 23,600 65,200 Retained Earnings Date Debit Credit Balance Jan. 1 Balance 105,100 Aug. 23 Dividends (cash) 15,800 89,300 Dec. 31 Net income 67,700 157,000 From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on disposal of plant assets was $5,900. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $52,800.) (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) Adjustments to reconcile net income to > $ $
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Related Book For
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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